Moneris Introduces PAYD for Mobile Credit Card Processing

Up until now, if you were a small business, the possibility of accepting credit card payments seemed remote with all the fees that are associated with a merchant account.  Plus, you may not have a store front to plug a terminal into and wireless terminals were just out of your budget.  But, earlier this week, Moneris Solutions, Canada’s largest merchant acquirer, made a big announcement by introducing PAYD(TM)… their solution to mobile transactions for small businesses.

Smartphones Become Smarter with Moneris’ PAYD POS system

PAYD(TM) is a new point of sale system that will turn your smartphone or tablet device into a credit card processing machine.  You are provided with a card reader that plugs into the audio port of most smartphones.  We’ve been told this system will work with Apple iPhones/ iPad, Google Android and Blackberrys.  The solution leverages Moneris’ ecommerce solution, the ever-popular e-Select Plus, to process the transactions and promotes secure transmission of information.

The decision to develop introduce such a solution was in response to the growing need from small businesses for a simple solution to process transactions.  According to Moneris, there are potentially over 1 million registered and unregistered small businesses who were not being served with a solution that was viable and suitable.  This solution now allows merchants like artisans, childcare, residential cleaners and photographers to prevent sales from walking away because they weren’t able to accept their customer’s preferred choice of payment.

The product is due to be available by the end of the month and the costs will be released at that time.  We have been told that the costs will be simple and upfront and the solution can be set up with limited assistance from the Moneris technical support team.

Moneris’ PAYD Card Processing Does Come with Risks

This is an exciting move forward in the world of payment processing for Canada.  The US has been enjoying such options for quite some time now so it’s been long overdue.  However, there are some questions that remain to be answered.

Since it’s a card reader and the e-Select system processing these transactions, are we to assume that they are going to be considered as Magstripe transactions or card not present transactions?  Each type carries their share of risks.  Mag transactions are subject to fraudulent chargebacks.  If a merchant accepts a fraudulent transaction on mag, they are held liable for that transaction.  It only shifts to the issuer if the transaction is EMV.  And if it’s processed as a card not present transaction, then it will carry a higher interchange.

Will Mobile Credit Card Readers Be Able to Handle Debit?

And what about Interac debit?  It doesn’t mention anything about the ability to accept debit cards and the assumption is because 98% of debit cards today are chip enabled.  So without a chip reader, most debit cards can’t be processed.  There’s also that negative notion of entering your PIN number on someone’s smartphone.  With all the talks about fraud and skimming, it’s unlikely many customers would be willing to do so.

But, aside from these points, the solution is very exciting and something all small businesses should consider.   And the ease of use and availability for processing credit cards with a mobile device may just outweigh the negatives.


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Matthew Hunt has been helping small businesses get set-up with Canadian Merchant Account Services since 2007 and helped 1000's do so. Join Matthew on Google+.

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